Wednesday, November 12, 2008

Microsoft is getting closer to a deal to become the default search provider for Verizon Wireless, according to a report Tuesday in The Wall Street Journal that cited people close to negotiations.

Microsoft would share ad revenue with Verizon under terms being considered, with guaranteed payments to the wireless carrier of $550 million to $650 million over five years, or twice what is Google was offering, according to people familiar with the deal. Microsoft is also reportedly negotiating to put its Windows Mobile operating system on more Verizon devices. The combined deals are valued at $1 billion.